Petco Q1 tops estimates as pet category continues to surge
Petco Health & Wellness Co.’s momentum continued in the first quarter as the company delivered its 14th consecutive quarter of comparable sales growth.
Petco, which has placed a growing emphasis on pet health and wellness services and exclusive products, posted net income of $24.7 million, or $0.09 per share, in the quarter ended April 30, up from $7.6 million, or $0.03 per share, in the year-ago period. Adjusted earnings per share of $0.17 beat estimates for $0.15.
Net revenue rose 4.3% to $1.476 billion and was up from $1.415 billion last year topping estimates of $1.450 billion. Comparable sales rose 5.1%, also more than expected.
“Petco's strong Q1 results were driven by our incredible team's 'no excuses' execution approach, a pet category that continues to surge, and the power of our one-of-a-kind end to end offering that now includes over 200 fully owned veterinary hospitals," said Ron Coughlin, CEO of Petco. "This is our 14th consecutive growth quarter and we are confident that continued category momentum – combined with our differentiated services, merchandise and advantaged Retail 3.0 omnichannel capabilities – positions us to continue delivering growth."
In January, Petco and Lowe’s Cos. said they are partnering on a pilot program to open in-store Petco shops inside Lowe’s stores, with 15 locations scheduled to open by the end of March. And in February, Petco announced it is partnering with Rover, an online marketplace for pet care, to connect customers with a variety of services.
[Read More: Petco partners to offer pet sitting, dog walking and other services]
Petco maintained its fiscal year guidance for net revenue of $6.15 billion to $6.25 billion and adjusted earnings per share of $0.97 to $1. Analysts expect revenue of $6.194 billion and earnings per share of $0.99.
Petco operates more than 1,500 locations across the U.S., Puerto Rico and Mexico, including a growing network of on-site veterinary hospitals and mobile veterinary clinics.